A company purchased $3,700 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $850 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is: Multiple Choice a. Debit Merchandise Inventory $2,850; credit Cash $2,850. b. Debit Cash $2,850; credit Accounts Payable $2,850. c. Debit Accounts Payable $2,850; credit Merchandise Inventory $57; credit Cash $2,793. d. Debit Accounts Payable $3,700; credit Cash $3,700. e. Debit Accounts Payable $2,850; credit Cash $2,850.